DoD's $16.3M custom programming contract with VANGENT, INC. awarded under full and open competition

Contract Overview

Contract Amount: $16,346,990 ($16.3M)

Contractor: Vangent, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2010-09-29

Contract Duration: 729 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE

Sector: IT

Official Description: TASK 2.4.1

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to VANGENT, INC. for work described as: TASK 2.4.1 Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized software development. 2. The contract utilized a Cost Plus Incentive fee structure, which can incentivize contractor performance but also carries cost risk. 3. Awarded to VANGENT, INC., a single contractor, highlighting the need for specific expertise. 4. The contract duration of 729 days suggests a significant project scope requiring sustained development effort. 5. The contract was awarded by the Department of the Army, a major component of the Department of Defense. 6. The North American Industry Classification System (NAICS) code 541511 points to a focus on custom software development rather than off-the-shelf solutions.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed scope and performance data. The Cost Plus Incentive fee structure suggests that the final cost could vary based on performance metrics. Comparing this to similar custom programming contracts would require access to detailed statements of work and final costs, which are not provided. However, the total award amount of $16.3 million over two years for specialized IT services is within a plausible range for complex government projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders (no) suggests a moderate level of competition for this specific requirement. While not a large number, it implies that multiple companies were interested and capable of performing the custom computer programming services.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, preventing potential overcharges associated with less competitive solicitations.

Public Impact

The Department of the Army benefits from specialized custom computer programming services tailored to its specific operational needs. The contract supports the development of unique software solutions that likely enhance military operations or administrative functions. The geographic impact is primarily within the Department of the Army's operational areas, potentially supporting personnel and systems nationwide or globally. Workforce implications include the employment of skilled IT professionals, programmers, and project managers by VANGENT, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive fee structure introduces potential for cost overruns if performance targets are not met efficiently.
Limited number of bidders (4) may indicate a niche requirement or high barriers to entry, potentially limiting price competition.
Specific details on performance metrics and incentive triggers are not provided, making it difficult to assess the effectiveness of the incentive structure.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract specifies custom programming, indicating a tailored solution designed to meet specific government needs.
The contract is managed by the Department of the Army, a large and experienced federal agency with established oversight processes.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls under the broader category of IT services, which includes software development, system integration, and IT consulting. The market for custom software development for government agencies is competitive, with numerous firms capable of delivering specialized solutions. The NAICS code 541511 specifically targets businesses primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Spending in this area is driven by the government's continuous need to modernize systems, enhance cybersecurity, and develop new capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, VANGENT, INC., may choose to subcontract portions of the work to small businesses as part of its overall business strategy or to meet broader socioeconomic goals, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and program managers. Accountability measures are often embedded within the Cost Plus Incentive fee structure, linking contractor payment to performance outcomes. Transparency is generally facilitated through contract award databases and reporting requirements, although specific details of performance and cost execution may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Software Development Initiatives
Custom Software Development Services
Information Technology Professional Services

Risk Flags

Cost Plus Incentive Fee structure requires careful monitoring to ensure cost control.
Sole awardee in full and open competition may warrant further review of competition dynamics.
Contract duration of two years necessitates ongoing performance management and adaptation to potential requirement changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to VANGENT, INC.. TASK 2.4.1

Who is the contractor on this award?

The obligated recipient is VANGENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2008-09-30. End: 2010-09-29.

What specific custom computer programming services were delivered under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' under NAICS code 541511. However, the specific nature of these services is not detailed. Typically, this could encompass a wide range of activities including software design, development, coding, integration, testing, and maintenance of unique software applications tailored to the Department of the Army's requirements. Without access to the contract's statement of work (SOW) or performance reports, it's impossible to specify the exact functionalities or systems developed. These services could range from developing new command and control systems, enhancing existing logistics software, creating data analytics platforms, or building specialized simulation tools.

How does the $16.3 million award compare to similar custom programming contracts within the DoD?

Comparing the $16.3 million award requires context regarding the contract's duration, scope, and complexity. This contract spans approximately two years (729 days). For custom programming services, this amount is within a reasonable range for significant projects within a large federal agency like the Department of the Army. However, without knowing the specific deliverables, technical challenges, and required expertise, a direct comparison is difficult. Larger, more complex system integrations or development of enterprise-wide solutions could cost tens or hundreds of millions, while smaller, more focused projects might be in the low millions. The Cost Plus Incentive fee structure also implies that the final cost could deviate from the initial estimate, further complicating direct comparisons.

What are the key risks associated with a Cost Plus Incentive (CPIF) contract for custom programming?

The primary risk with a Cost Plus Incentive fee (CPIF) contract for custom programming is the potential for cost overruns if the incentive targets are not structured effectively or if the contractor's cost estimation is inaccurate. While CPIF aims to motivate contractors to control costs by sharing savings or cost increases with the government, it can lead to higher final prices than fixed-price contracts if performance goals are challenging or if scope creep occurs. For custom programming, where requirements can evolve, managing the baseline cost and ensuring the incentive structure appropriately rewards efficiency without sacrificing quality is crucial. The government bears a significant portion of the cost risk, and the contractor's profit is tied to achieving specific performance objectives, which may not always align perfectly with the government's ultimate goals.

What is the significance of VANGENT, INC. being the sole awardee in this full and open competition?

The fact that VANGENT, INC. was the sole awardee in a full and open competition suggests that, despite the open nature of the solicitation, only one offeror met all the technical, management, and cost requirements to the satisfaction of the Department of the Army. This could indicate a highly specialized requirement where few companies possess the necessary expertise, certifications, or past performance. It might also suggest that the evaluation criteria were stringent, or that other potential bidders decided not to submit proposals due to the perceived difficulty or specific demands of the requirement. While competition is generally preferred, a sole awardee in an open process means the government selected the best-qualified offeror available at the time.

How does the duration of 729 days impact the assessment of this contract's value?

The duration of 729 days, approximately two years, indicates a substantial and ongoing project rather than a short-term task. For custom programming, a two-year timeline suggests the development of complex software, potentially involving multiple phases, iterative development, testing, and deployment. This extended period allows for a more thorough development process, which can be beneficial for intricate systems. However, it also increases the risk of requirements changing over time, the need for ongoing maintenance and support, and the potential for cost escalation. Assessing the value requires evaluating the deliverables achieved throughout this period against the total cost incurred, considering the evolving technological landscape and the agency's needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Veritas Capital Fund II L P (UEI: 160610809)

Address: 4250 N FAIRFAX DR STE 1200, ARLINGTON, VA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,813,463

Exercised Options: $17,019,359

Current Obligation: $16,346,990

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W74V8H04D0025

IDV Type: IDC

Timeline